Posted by B. Hawkins on February 05, 2010 at 15:07:19:
A banker and I were discussing valuing property in today's market. He said
LTV is less important to bankers now than DSCR and Debt Yield and that
banks are more interested in underwriting against DSCR and Debt Yield. I
told him I was unfamiliar with the term Debt Yield.
(We all learn that there are a lot of ways to say the same thing differently in
this biz.) He described it as the ratio of verified NOI divided by the principal
balance. He was looking for 12%-14%. I checked several of my reference
books and could not find this term, or an example. Does anyone out there
have a place I can see this used and has your underwriter brought this up?
- Re: Debt Yield richard norton 22:37:17 02/18/10 (0)
- Re: Debt Yield Robert Kim 09:09:50 02/08/10 (0)